HomeMy WebLinkAbout1965-045 CCR Member John Leary introduced the following resolution and
moved its adoption:
RESOLUTION NO. 65 -45
RESOLUTION ESTABLISHING A METHOD TO DETERMINE INTEREST
RATE ON FUNDS LOANED TO OTHER VILLAGE FUNDS FROM THE
INVESTMENT TRUST FUND
WHEREAS, the Village of Brooklyn Center did on May 9, 1960 adopt
a resolution establishing a policy of determining an interest rate to be
charged on the loaning of funds from the Investment Trust Fund to
construction projects based on the average net interest rate of the most
recent issue of special improvement bonds sold by the Village of Brooklyn
Center and
WHEREAS, since the establishment of this policy the average net
interest rate of bonds sold has decreased and the interest rate that the
Investment Trust Fund has been able to obtain from other investments
has increased to the point where it is now disadvantageous for the
Investment Trust Fund to make loans to the construction projects at the
interest rate established by this policy, it is therefore desirable to
ammend this policy to prevent future inter fund inequity in loaning
procedures.
NOW, THEREFORE, BE IT RESOLVED by the Village Council of the
Village of Brooklyn Center, Minnesota that the rate of interest to be charged
by the Investment Trust Fund on loans to construction projects or any other
Village Fund be equal to the gross effective earnings rate of the Investment
Trust Fund for the most recent calendar year ended prior to the granting of
the loan. The rate established by this resolution shall be retroactive to
January 1, 1965.
April 5, 1965
Date Mayor
ATTEST: a A
Clerk
The motion for the adoption of the foregoing resolution was duly seconded
by member Howard Heck and upon vote being taken thereon the following
voted in favor thereof: Gordon Erickson, Howard Heck, John Leary,
Phil Cohen and Earl Simons,
and the following voted against the same: None;
whereupon said resolution was declared duly passed and adopted.